Amarantha Corp Calculate the Unit Product Cost Using Absorption Costing and Variable

question 126

Essay

Amarantha Corp. has provided the following data for the current year.
$$\begin{array} { | l | r |} \hline \text { Units produced } & 2,500 \text { units } \\\hline \text { Sales price } & \$ 200 \text { per unit } \\\hline \text { Direct materials } & \$ 75 \text { per unit } \\\hline \text { Direct labor } & \$ 65 \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 25 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 225,000 \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 30 \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 150,000 \text { per year } \\\hline\end{array}$$ Calculate the unit product cost using absorption costing and variable costing.

---

Definitions:

Procedure

A set procedure or method followed in a scientific study or test to achieve certain objectives or results.

More Than Two Groups

A situation in statistical analysis where comparisons are made among three or more distinct groups or categories.

Two Groups

A reference to experimental designs where subjects are divided into two groups for comparison.

Single Group

Involves analyzing or obtaining data from one specific group or category, often used in research studies for comparison or to measure change over time.